
Delivering parcels is harder than you think.
A knock on the door. “Funny”, I thought, I’m not expecting anything yet. It was someone delivering a parcel. I … Read More “Delivering parcels is harder than you think.”
A knock on the door. “Funny”, I thought, I’m not expecting anything yet. It was someone delivering a parcel. I … Read More “Delivering parcels is harder than you think.”
Tucked away down a side street, close to Canterbury West station is this early twentieth century reminder that we used … Read More “Change doesn’t always need to be invented”
The same things you want, of course: The trick now, for any business, is to work out how to give … Read More “What your customers really want”
On the first day of my first ‘proper’ job, my boss took me round the place, introducing me to all … Read More “Drudgery? Not for me.”
I’m a fan of the 80/20 rule when it comes to documenting processes in a Customer Experience Score. Trying to … Read More “Exceptional service”
I experienced two very different attitudes to customers yesterday. The first was from the people who built my kitchen cabinets … Read More “Attitudes to customers”
It starts when a subcontractor decides they’ll do what’s legal, rather than what’s current best practice.
You don’t see them as part of your team. That’s why they’re subcontracted, so they cost you less.
Trouble is, they don’t see themselves as part of your team either.
They certainly don’t see your customers as theirs.
So why make any extra effort to keep your Promise.
Whatever that is.
If a customer complains, well, never mind, it’s legal. Even if it is inconsiderate. Even if it is different from every other installation.
Your subcontractor isn’t going to re-do work that meets the minimum standard. You’re not going to pay them to do it again.
So, slowly, over time, current practice gets eroded.
Until the minimum becomes the best your customer can expect.
Especially when they have no choice.
What you don’t yet see, is that you’ve undermined your own foundation.
When you’ve eroded your standards away to the minimum, it isn’t hard to be better.
So as soon as a better alternative appears, you’ll have nothing left to hold you up.
Certainly not your customers.
I’m looking at you Openreach.
Catch it now, while you can.
Is it just me, or is anyone else worried/annoyed/infuriated by the rise of ‘Clubcard Prices’, ‘Nectar Prices’ and the like?
I keep a pretty good track of prices in my head, and from what I could see, ‘Clubcard Prices’ weren’t lower than the usual prices elsewhere. It was simply an opportunity to put ‘normal’ prices up, by quite a percentage.
Harmless enough, until every other member of the supermarket cartel joins in of course.
To me it feels very much like ‘Give us your loyalty, or you’ll pay extra for everything’.
Since when has blackmail been an acceptable business model?
One of our case studies at London Business School, involved a company that supplied rags to industry. Rags – textiles at the absolute end of their useful life might seem to be the ultimate commodity. Almost worthless. How could a business supplying them ever hope to create unmissable value for it’s customers?
Simple.
By surrounding that commodity product with deep layers of service.
By getting under the skin of it’s clients; understanding where and how they used the rags and what the problems could be. Then making sure they more than met every rags need in the way they sold, delivered, collected and disposed of them for the client.
By maintaining that intimacy with their clients through the people they interacted with – the people who delivered and collected, so that every new need could be anticipated and added to the service.
In those days, adding service meant adding people, because people are the only way to create value for other people.
That’s still true, even if nowadays your first thought would be to build an online platform.
Technology doesn’t create new value overall, it can only make it cheaper for a particular business to deliver its service – until another particular business catches up or overtakes, or undercuts (Ever wondered why hand car washes have replaced the automated ones? Cheap (slave) labour, makes machinery unprofitable).
So if the key to profitability is service, and service means adding people to deal with people, maybe we have an answer to the climate crisis?
Stop making things, use what we already have (e.g. enough clothing for 3 times the global population), and pay people well to support other people – regenerating our environment; housing; education; health; repair and recycling; art; music, entertainment… the list is endless.
We wouldn’t be short of work, and we might well be happier.
After all, this is how we did things for most of our existence on this planet.
One day we might realise we don’t even need money to make this work.
It may not feel like it, but when a customer complains about your service, they are demonstrating that they care.
If they feel let down, it’s because they feel they have a human relationship with you. One they value highly enough to fight for. What you do in response can make or break that relationship. So you want be doing it on purpose.
That means it pays to make handling complaints part of your Customer Experience Score.
Obviously you can’t predict exactly what might go wrong for a customer, so this is not about predetermining specific solutions to specific problems. Instead it’s a higher-level process that can be applied to any situation.
The process starts by acknowledging the person’s emotions as well as the facts. However unreasonable it may be for the person in front of you to feel what they feel, they still feel it. And while they are feeling, they can’t be thinking. What they need first is to be seen or heard as a human being, to have their anger/distress/disappointment recognised as valid responses to being let down.
This doesn’t mean coming out with the bland ‘I’m sorry you feel that way‘ kind of statement – the kind that’s usually followed by a ‘but’ – ‘but we don’t do refunds‘. I mean genuine sympathy – ‘Gosh yes, I would be hopping mad too!‘, ‘Blimey that must have been sooo frustrating.‘ – the kind of sympathy that enables the complainer to recover enough equanimity to move on. Once you have achieved that, you can acknowledge the facts of what’s happened, without admitting liability.
The next stage is to find out what will make the complainer happy again. What will repair, or even strengthen your relationship with them. You need to be able to offer a solution that is right for both of you. That means collaboration between you. That starts by asking them ‘What could we do to make this right for you?‘, then continuing to explore what they would feel is reasonable, without committing to anything at this stage. Bear in mind knock-on effects of the service failure – perhaps something else was damaged as a result, or they had to take time off work to come and see you. Also bear in mind what is affordable for you. It’s worth understanding the lifetime value of a customer, as well as the value of this particular transaction.
By the end of this stage, you have a pretty good idea of what would restore your customer’s faith in the relationship.
Now top it. Offer a solution that will exceed their expectations, without breaking the bank. This often involves addressing the collateral damage – for example if a pan breaks in normal use, you’d expect to replace it, if in breaking the contents spoilt a tablecloth, you could offer to replace that too. If they travelled out of their way by public transport to make a complaint, you could send them home in a cab. It’s this kind of thing that tips a complainer into an advocate for your business. Remember, they are complaining because they care.
Finally, deliver on the promise, without hesitation.
This process only works when the people running it fully understand the profit margins and lifetime values for your business.
Make sure they know it, and you can let them be creative in coming up with solutions, no matter what the complaint.
Discipline makes Daring possible.